Highly Favorable Litigation Outcome on Behalf of Our Client, Security One International

On September 23, 2013, Freeborn & Peters obtained a highly favorable outcome on behalf of its client Security One International in litigation before the United States District Court for the Northern District of California  -- ADT Security Services, Inc. v. Security One International, Inc. et al., Case No. C 11-05149 (YGR).
ADT, the largest alarm service provider in the United States, alleged that its competitor Security One was poaching thousands of ADT customers through deceptive sales practices, in violation of the Lanham Act and similar state law. The Freeborn & Peters team of John O’Bryan, Megan Kokontis and Mark Boyer defended Security One. The case settled after the close of evidence for less than 15% of what ADT was seeking, and with the insurer paying the entire judgment and dropping its coverage defenses. (Prior to trial, Security One obtained a declaration in California state court that the insurer owed Security One a duty to defend, with indemnity obligations to be determined after trial and the insurer reserving all rights.)
One key issue in the case concerned whether ADT was losing customers to its competitor because of alleged deceptive sales practices or because ADT was being undercut on price.  Another key issue was ADT’s alleged damages, and whether under a relaxed Lanham Act standard for proof of damages adopted by the Court a jury would accept ADT’s extrapolation from a modest number of poached customers it could identify to its claim for millions in damages.  The client, who paid nothing and admitted no wrong-doing, was thrilled with the result. 

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